Startup Legal Checklist: 10 Documents Every Founder Needs
1. Certificate of Incorporation / Formation
The document that creates your company. Delaware C-Corp is standard for VC-backed startups. LLC for bootstrapped/small business. Filed with the Secretary of State. Get this done before you sign anything commercial.
2. Founder Agreement
Covers: equity split, vesting (4-year / 1-year cliff), roles and responsibilities, IP assignment to the company, decision-making, and what happens if a founder leaves. The most important document most founders skip. Without it, the departing co-founder keeps their equity and can start a competing business tomorrow.
3. IP Assignment Agreements
Every founder, employee, and contractor must sign an IP assignment transferring all work product to the company. If a contractor builds your MVP and never assigns the IP, they — not your company — own the code.
4. NDAs
Standard mutual NDA for discussions with potential partners, investors, and employees. Don't overcomplicate it. A 2-page mutual NDA covers 90% of situations.
5. Contractor / Consulting Agreements
Must include: scope of work, payment terms, IP assignment, confidentiality, and termination. Never use a handshake deal for contractors — if they don't assign IP in writing, your company doesn't own it.
6. Employment Offer Letters
At-will employment, title, salary, equity (reference the option plan), start date. Keep it simple. The offer letter references the equity plan — the plan itself is a separate document.
7. Stock Option Plan + Option Agreements
Standard: 4-year vesting, 1-year cliff, 90-day post-termination exercise window. File an 83(b) election within 30 days of granting restricted stock — this is time-sensitive and easy to miss.
8. Terms of Service + Privacy Policy
Required if you have a website or app. Privacy policy is legally required (GDPR, CCPA). Terms of service limit your liability. Generate these before launch — retroactive ToS changes are messy.
9. Board and Shareholder Consents
Written records of major decisions: issuing stock, approving option grants, authorizing contracts. Corporate veil depends on proper documentation. Without board consents, your company's separate legal existence can be challenged.
10. Cap Table
Not a legal document per se, but the single source of truth for who owns what. Keep it updated after every issuance, transfer, or grant. A messy cap table kills funding rounds.
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